German property investor Union Investment has acquired an office property near the Louvre Museum in Paris from French independent real estate investor Oreima.
Financial details were not disclosed.
Situated at 40 Rue du Louvre in the 1st arrondissement of Paris, the deal was struck on behalf of open-ended real estate fund Unilmmo: Deutschland.
'40 Rue du Louvre is a historical building with an outstanding address. Following its restructuring, it now meets the standards expected of a modern office property,' said Martin Schellein, head of investment management Europe at Union Investment Real Estate.
The building comprises 9,700 m2 of rental space, of which 7,500 m2 is offices let to Spaces, a company belonging to the IWG Group (formerly Regus). In addition, there is 2,200 m2 of area devoted to retail on the ground floor and basement level.
'We also believe that the location will continue to perform well over the next few years as Paris’s central business district extends into neighbouring areas. This development is creating positive conditions for further rent growth,' Schellein added.
Built in 1855, the property features a Haussmann façade and was remodelled and updated by Oreima in 2017. Certifications now include HQE tertiary renovation buildings, BREEAM, BBC renovation and NF tertiary buildings.
Following the acquisition, Union Investment holds 20 commercial properties in France worth a total of around €3 bn in its actively managed real estate funds. The majority of the properties are located in Paris.
Union Investment was advised on the acquisition by C&C Notaires, Archers and Fidal. Oreima received advice from Wargny Lelong Retel Mercier et associés, Gide Loyrette Nouel, JLL and BNP Paribas Real Estate. BNP Paribas Real Estate completed the transaction.